Real Estate Agent’s Cut Their Commissions
The September issue of Consumer Reports magazine has some great news for home sellers. Haggle on the real estate commission before you sign a listing agreement.
The 3 year study released Monday by the respected, non-profit group found that:
- 71% of home sellers were successful in getting the agent to reduce their fee.
- Seller’s who paid a 3% commission were just as satisfied with the job performance as those who paid the “traditional” 6% fee.
- Seller’s who paid the most commission, ironically had the most regrets about their selling experience.
- Nearly one-third of home sellers said they should have been more aggressive when negotiating the commission they were charged.
- Over half of the 9141 polled responders reported they paid less than a 6 percent commission to sell their home by agent.
- Re/Max and independant brokers were more willing to deal and lower their fee’s. 77 percent of sellers who listed with these firms reported that they cut the commission.
- 67 percent of Keller Williams, Prudential and Century 21 agents agreed to lower their fee’s, when ask. While only 64% of Coldwell Banker agents lowered theirs in response to the seller’s request.
- According to Consumer Reports, “We found that paying an agent a lower commission rarely had any effect on the sales price.”
- 82 percent of respondents sold with the help of an agent, and received an average price of $5000 below the asking price.
- 17 percent of respondents sold their home without an agent, and they reported receiving roughly the asking price for their homes.
- A shocking fact was also revealed in this report. Only 46 percent of home sellers attempted to negotiate the fee at all.
In conclusion, if cutting the costs of sell your home is important, it pays to haggle, negotiate or walk away if you are not successful in getting an agent to reduce their commission. Nearly all Agents will cut their fee’s or you can easily find one who will .
Another alternative for sellers in tough times, list on the MLS , act as your own agent and save a bundle of cash.
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